Illegal Capital Market Activities: SEC shuts down Growing Circle

The Securities and Exchange Commission, SEC, has
sealed off the premises of Growing Circle in Lagos for engaging in illegal fund
management activities.

According to the Commission, the company was shut down
for carrying out investment operations that falls within fund management
without registration with the apex regulator.

The commission had established that the company’s
activities also constituted an infraction of the Investments and Securities Act
(ISA), 2007.

According to SEC, “They do not have registration with
the SEC and the Commission has powers according to Section 13 (w) of ISA 2007,
to shut down any company carrying out capital market activities without due
registration”.

“The mode of operation of the company is that for a
new entrant, registration is N10, 000 and the person is not entitled to
products while the second category has a registration fee of N16,000 that
entitles the registrant to receive products.

“For anyone to come under the company, he has to come
under an up liner since the company engages in networking business.

For the networking business, the least stage is a
starter point with minimum registration of $50 with an incentive of $15 for a
member who introduced two down liners.

It was gathered that the company also engages in free
seminars at its head office for people to learn more about the products and the
money making business with an unbeatable compensation plan and huge bonus

The SEC disclosed that however, after registering, the
members claim they do not get any products from the company and all efforts to
retrieve their funds proved abortive, hence the complaint to the SEC.

While the company claimed to have a factory in Ogun
state, the said factory could not be located even though the products were on
display at their Lagos office.

The SEC Management said the closure was to end
unlawful activities of the company against unsuspecting investors and therefore
urged investors to ensure they only deal with fund managers that are registered
with the Commission.

“The accounts of the company have been frozen; the
promoters have been arrested by the Nigeria Police Force and are undergoing
interrogation.

The Commission wishes to notify the investing public
that the company is not licensed to carry out investments business of any type
and as such its operations are illegal.

The SEC therefore advises the public to exercise due
diligence and caution in the course of making investment decisions adding that
valid licence of lawful operators could be obtained on the commission’s website
by members of the public to confirm the licences of firms with which they
intend to carry out investment activities.